ICE weekly outlook: Canola to notch lower in holiday trade

CNS Canada –– ICE Futures Canada canola contracts are likely to edge lower, short-term, in sluggish holiday trading.

“It’s just kind of a quieter time of year for fundamental news, so you’re just kind of taking direction from outside markets,” said Jon Driedger of FarmLink Marketing Solutions.

Canola prices will likely see pressure moving into the New Year, he added, but they don’t look exceptionally heavy.

Chicago Board of Trade oilseed markets will likely cause spillover weakness in coming sessions, as they are expected to decline with favourable South American growing conditions.

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Increased farmer selling is also likely to pressure values, Driedger said.

“I think a couple of these factors are coming together to give the market a little bit of a breather.”

Since last week, canola prices have lost about $13 per tonne in the January contract.

“As we head into the holiday window there’s generally less fresh fundamental news and markets get a little thinner,” Driedger said.

Moving forward, traders will be watching for South American weather and U.S. Department of Agriculture reports in the New Year.

— Jade Markus writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

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